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---
title: "ESMA Q&A 1557 — Q&A — Scope of the trading obligation for shares [Answer Published]"
shortTitle: "ESMA Q&A 1557 — Q&A — Scope of the trading obligation for shares [Answer Published]"
answer_id: ESMA_QA_1557
topic: "Equity transparency"
status: "Answer Published"
type: qa
instrument_type: qa
authority: ESMA
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legal_status: in_force
regulation: "MiFIR"
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date: 15 November 2017
source_link: https://www.esma.europa.eu/publications-data/questions-answers/1557
lifecycle: "Answer Published"
text_version: "ESMA Q&A register, 15 November 2017"
source_url: "https://www.esma.europa.eu/publications-data/questions-answers/1557"
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---

**Answer by ESMA, published in its Q&A tool · not legislation · published 15 Nov 2017 [Answer Published]**

*Answer Published · ESMA Q&A register, 15 November 2017 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/1557)*

| | |
|---|---|
| **Full title** | ESMA Q&A 1557 — Q&A — Scope of the trading obligation for shares \[Answer Published\] |
| **Prepared by** | ESMA |
| **Published by** | ESMA, in the ESMA Q&A tool |
| **Reference** | ESMA_QA_1557 |
| **Document type** | Q&A |
| **Legal nature** | Not legislation |
| **Addressees** | Not stated in the document |
| **Dates** | Published 15 November 2017; question submitted 15 November 2017 |
| **Legal basis** | MiFIR |
| **Related instruments** | None recorded |
| **Text on this page** | Word for word — the full text of the ESMA publication |

**Scope of the trading obligation for shares**

### Question

What is the scope of the trading obligation where there is a chain of transmission of orders?

***

### Answer

\[ESMA 70-872942901-35 MiFIR transparency Q&A, Q&A 3.2\]

Article 23(1) of MiFIR determines the scope of the trading obligation for shares admitted to trading on a regulated market or traded on a trading venue by requiring investment firms to ensure that trades they undertake in shares take place on a regulated market, MTF, systematic internaliser or equivalent third country venue. Where there is a chain of transmission of orders concerning those shares all EU investment firms that are part of the chain (either initiating the orders or acting as brokers) should ensure that the ultimate execution of the orders complies with the requirements under Article 23(1) of MiFIR.

As an example, where an EU investment firm transmits an order for a share admitted to trading on a regulated market or traded on a trading venue to an EU investment firm that subsequently passes it on to a non-EEA firm, the EU investment firms should ensure the trade is undertaken in accordance with the requirements set out in Article 23 of MiFIR, i.e. on a regulated market, MTF, systematic internaliser or equivalent third country venue.

***

**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/1557)